Performing Effective Collection - Make Sure That Your Customer Pays The Bill

By Author: Adeline Mary
Total Articles: 8
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Getting paid is the toughest part to accomplish and it is the crucial phase of running a business. Especially during the Extenuating Circumstances like recession, most of the businesses faced a major disaster without getting back the debts from their customers. Hence, it is one of the vital parts to give attention to. We cannot initially pressurize our customer as we may loose them or they would be adopting certain rules in paying back the amount. Understanding the situation of the customer would help reducing the risks in getting paid. This article highlights you six vital things you should espouse to get your payment on time.

Generating an Invoice:

It starts from the pole you raise an invoice. The invoice has to be raised once the job is done or the product sold by the customer. There should not be any delay considering other work as it is really critical for you to be getting paid on time. You should understand that you never get the payment if they don't have the bill. Hence, it is advisable to raise an invoice and keep track of the transaction once the job is done.

Provide a clean invoice:

While ...
... raising an invoice, you should remember the things should be mentioned sequentially in order to make it concise. It's not required to be elaborate yet the customer and the service provider should clearly understand the transaction details. You should include the important things such as due date, the invoice raised for, the date of issue and any other terms that abides. It is equally important to mention about the penalties for the late payment. Most of the software allows you to customize your invoice as you desire. You should create your invoice precise so that you could avoid any chaos during your auditing.

Hitting the payment deadline:

It is always good to know the accounting practice of your customers. Large scale industries adopt payment cycles and they may have the habit of sent out the payments once or twice in a month. Hence, it is wise to high prioritize the task and getting the payment during the first cycle. If we delay our invoice process, we have to wait till the next payment cycle. You should keep priority tasks in your mind first so that it would be easier to close the transaction without hassles. It would make your accounts cool and clear.

On time follow up:

Just as you need to get your payment on time you also need to do a follow up call promptly. You could call your customer 10 days before an invoice due date so that it would allow them to make necessary arrangement for the money. You can wait till 30 days after the payment due date. If you have not received the amount, you will have to make a collection call.

Collection calls procedure:

Being rude or forceful is not going to help you getting your money; instead it would make them more reluctant in paying the bill. You should be more balanced in your conversation. You are not required to be either polite or harsh.

Not to give up:

If you still facing issues getting paid, you must continue following up with them. You could continue making calls regularly until you get the proper response. If they are responding to your calls, you can visit them in person. If you failed doing all the above, you can get in touch with the collection agency or may be your
lawyer. Most collection efforts would come to an end with the collection calls itself.

Adeline is an expert author of href="http://www.accountingproviders.com/us/state/Kansas">Accounting Outsourcing. Accounting Providers is an accounting expert's directory where you can find Professional Accountants from all over the world.You can visit www.accountingproviders.com for further information.